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AI0-001 Implementing AI Solutions Practice Question

A team is implementing a RAG system for a legal document Q&A. They need to chunk documents effectively. Which THREE chunking strategies should they consider to improve retrieval accuracy for legal texts that contain hierarchical sections (clauses, sub-clauses, definitions)?

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Hierarchical chunking that indexes chunks at clause and sub-clause levels with parent relationships

Semantic chunking splits at natural boundaries (e.g., paragraphs, sections), preserving meaning. Hierarchical chunking indexes with parent-child relationships for context. Fixed-size chunking is simple but may break sentences or clauses. Overlapping chunks can help but is not a primary strategy for accuracy; sliding window is a specific technique.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Hierarchical chunking that indexes chunks at clause and sub-clause levels with parent relationships

    Why this is correct

    Allows retrieval of granular chunks while maintaining broader context.

  • Overlapping chunks with a 10% overlap between consecutive chunks

    Why it's wrong here

    Helps with boundary issues but does not address hierarchical structure; not a primary strategy.

  • Fixed-size chunking with a 512-token window and no overlap

    Why it's wrong here

    May split clauses mid-sentence, losing context; not ideal for legal structure.

  • Chunking based on the document's table of contents and section hierarchy

    Why this is correct

    Leverages existing structure; similar to semantic and hierarchical approaches.

  • Semantic chunking that splits at natural boundaries (e.g., section headings, paragraph breaks)

    Why this is correct

    Preserves logical units of legal text, improving relevance.

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